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Approval Odds? Charge Off Recently Paid

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Nikkihilton1
New Member

Approval Odds? Charge Off Recently Paid

My credit is in repair mode- for real. However, I find myself in a situation where I need to purchase a vehicle sooner vs later. I have found one that I love, just not sure the timing is right. It will require financing. Earlier this month I paid a charged off credit account in full. Is it better for me to wait until this reports to credit bureaus before I apply for financing? Right now my Fico Auto Score 8 averages at 596 Smiley Sad  My DTI is 15%. I do have some late payments that are still reported. But all credit cards are in good standing.

 

I was really trying to wait a few months on the vehicle purchase, but I am just not sure my current vehicle will give me the luxury. I have about $5,000 in cash that I can put down. Would be looking to finance 20k. Am I crazy for thinking I might be able to get approval?

7 REPLIES 7
FireMedic1
Community Leader
Mega Contributor

Re: Approval Odds? Charge Off Recently Paid

Welcome @Nikkihilton1 

Yes wait until the CO updates. If you can break 600 that will help some. But unfortunately in the low 600's. Interest will be a problem. Shop around like Cap1 Navigator and a few others that SP. In time you can re-finance once scores rebound from the baddies. Stay within your budget. Dont let oh man I want that car and end up really paying for it. If your current vehicle can hold out. Let your file grow and scores rebound. Then get a better car. I'd love to have a Vette. But my Explorer ST is just fine.


Message 2 of 8
Nikkihilton1
New Member

Re: Approval Odds? Charge Off Recently Paid

Good Advice. Thank you! And here I am wishing I could get an Explorer ST!! Car I am looking at is a 4Runner, it suits all my needs plus I am comfortable that it will be reliable and hold value. Lots to think about! 

 

Message 3 of 8
FLLGuy
Frequent Contributor

Re: Approval Odds? Charge Off Recently Paid

@FireMedic1- you don't play ST upgrade to un "Corbette".  Love the blackedout STs - That's what I call first responder with speed!!!! Smiley Happy     I still drive my 2010 Ford SHO can't complain still looks and drives well.

@Nikkihilton1- also check out driveway (dot) com it's an SP like Cap1 Auto-Navi for comparisons and Carvana.  Granted, these other SP sites include delivery fees but only recommended it to compare only.  Also, you're quoted could change at time of application - how much is only anyones guess.   Wish you the best report back where you land.




Message 4 of 8
Mdowning30
Established Contributor

Re: Approval Odds? Charge Off Recently Paid

Theirs a lot of good used cars in the 10-15K price range, that would be much more reliable than what you're dealing with, especially if you get a Toyota/Honda etc. Your interest rate would likely be in the 20+%, once you get in the upper fair range you might be able to score a loan for 9-12%. Sacifice a year with a cheaper car, get your scores up then get what you really want.

Chase Freedom Unlimited : $6000 | Discover It Chrome : $3500 | AmEx CS Investor : $6000 | Chase Sapphire Preferred : $5000 | Chase Amazon Prime : $2000 | AmEx Hilton Surpass : $1000 | AmEx Business Plus : $2000 | AmEx Platinum CS : POT $2800 | Tower Federal CU : $15,000 | Lowes Commercial Account : $1,000 | WF Bilt Mastercard : $4,000 | Shell Fleet Plus : $1,000
Total Credit Limit : $42500
Experian FICO 8 : 700
| TransUnion FICO 8 : 688 | Experian FICO 9 : 665
Starting Score: 512
Current Score: 700
Goal Score: 700+

Take the myFICO Fitness Challenge
Message 5 of 8
Mdowning30
Established Contributor

Re: Approval Odds? Charge Off Recently Paid

@Nikkihilton1 The 4Runner is a great SUV, i have a 2015 Camry XSE V6. Toyotas hold their value pretty well when its time to sell them. If you are looking at the current model 4Runners, the design has been around since 2010, only slightly refreshed.

Chase Freedom Unlimited : $6000 | Discover It Chrome : $3500 | AmEx CS Investor : $6000 | Chase Sapphire Preferred : $5000 | Chase Amazon Prime : $2000 | AmEx Hilton Surpass : $1000 | AmEx Business Plus : $2000 | AmEx Platinum CS : POT $2800 | Tower Federal CU : $15,000 | Lowes Commercial Account : $1,000 | WF Bilt Mastercard : $4,000 | Shell Fleet Plus : $1,000
Total Credit Limit : $42500
Experian FICO 8 : 700
| TransUnion FICO 8 : 688 | Experian FICO 9 : 665
Starting Score: 512
Current Score: 700
Goal Score: 700+

Take the myFICO Fitness Challenge
Message 6 of 8
7774x
Established Contributor

Re: Approval Odds? Charge Off Recently Paid


@Nikkihilton1 wrote:

My credit is in repair mode- for real. However, I find myself in a situation where I need to purchase a vehicle sooner vs later. I have found one that I love, just not sure the timing is right. It will require financing. Earlier this month I paid a charged off credit account in full. Is it better for me to wait until this reports to credit bureaus before I apply for financing? Right now my Fico Auto Score 8 averages at 596 Smiley Sad  My DTI is 15%. I do have some late payments that are still reported. But all credit cards are in good standing.

 

I was really trying to wait a few months on the vehicle purchase, but I am just not sure my current vehicle will give me the luxury. I have about $5,000 in cash that I can put down. Would be looking to finance 20k. Am I crazy for thinking I might be able to get approval?


Try Penfed  or other CUs..Got  $38,000 auto loan even with some black marks ,on the CR at the time..Better for score in 640 range

Message 7 of 8
AndySoCal
Valued Contributor

Re: Approval Odds? Charge Off Recently Paid

@Nikkihilton1  I would suggest when you decide to make the purchase see if your bank or credit union will approve you first. If you let the dealer finance you most likely see numerous inquiries on your credit report in the effort to get you financed.  Here is an article on auto loan inquires and the FICO score

 

https://www.myfico.com/credit-education/blog/auto-loan-checked-fico-score-recently 

FICO Scores XPN v8 802 V2 831 (SDFCU) TUC 803 v8 EFX 807 (10/2023)
Discover 09/90 19,000, JCPenney 10/2008 4,700 US Bank Cash 12,000 Citibank Custom Cash 5/2015 11,100 State Dept. FCU 20,000 06/2023 , 02/2024 Redstone FCU Signature VISA 10,000 Banking: Ally Bank Credit Unions: Lafayette FCU Fortera FCU State Department FCU Pelican CU

Pelican State CU Redstone FCU SDFCU auto CLI. 6/24 5000 to 20k

Message 8 of 8
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